Productivity Gains from Agglomeration and Migration in Chinese Cities Over 2002-2013

GATE, WP 1709 – February 2017

17 Pages Posted: 15 Feb 2017

See all articles by Pierre-Philippe Combes

Pierre-Philippe Combes

Université de Lyon; Sciences Po - Department of Economics; Centre for Economic Policy Research (CEPR)

Sylvie Démurger

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Shi Li

Beijing Normal University (BNU) - School of Economics and Business Administration

Date Written: February 15, 2017

Abstract

We evaluate the evolution of productivity gains from Chinese cities over time, from 2002 to 2013. In 2002, rural migrants were exerting a strong positive externality on natives' earnings, which were also higher when access to foreign markets through access to sea was higher. In 2007 and then further in 2013, city size (employment density but also land area) has become the crucial determinant of productivity whereas market access, internal or external, plays no direct role. Rural migrants still enhance natives' earnings, though the effect is more than half lower than in 2002. Urban gains, and their evolution over time, are very similar on total and per hour earnings. Skilled workers and females seem to gain slightly more from cities than unskilled workers and males.

Keywords: urban development; agglomeration economies; wage disparities; migration; China

JEL Classification: O18, R12, R23, J31, O53

Suggested Citation

Combes, Pierre-Philippe and Démurger, Sylvie and Li, Shi, Productivity Gains from Agglomeration and Migration in Chinese Cities Over 2002-2013 (February 15, 2017). GATE, WP 1709 – February 2017, Available at SSRN: https://ssrn.com/abstract=2917333 or http://dx.doi.org/10.2139/ssrn.2917333

Pierre-Philippe Combes (Contact Author)

Université de Lyon ( email )

92 Rue Pasteur
Lyon, 69007
France

Sciences Po - Department of Economics ( email )

28, rue des Saints peres
Paris, 75007
France

HOME PAGE: http://https://www.gate.cnrs.fr/ppcombes

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Sylvie Démurger

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France
(33 4) 72 86 61 05 (Phone)
(33 4) 72 86 60 90 (Fax)

HOME PAGE: http://www.gate.cnrs.fr/spip.php?article22

Shi Li

Beijing Normal University (BNU) - School of Economics and Business Administration ( email )

No.19 Xinwai Str
Haidian District
Beijing, 100875
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
63
Abstract Views
578
rank
412,350
PlumX Metrics